Article excerpt

The automaker is facing the fallout from a scandal over falsified
fuel-economy ratings.

Mitsubishi Motors said Wednesday that it expected to incur a loss
of 145 billion yen this year as it faces the fallout from a scandal
over falsified fuel-economy ratings.

The net loss of $1.39 billion, forecast for the fiscal year to
March, would be Mitsubishi's first in eight years. The scandal
prompted Mitsubishi to seek a $2.2 billion rescue from its fellow
Japanese automaker Nissan Motor last month as it struggled with
falling sales and the rising cost of compensating customers.

The episode has already cost Mitsubishi a significant amount of
independence. The carmaker gave up about one-third of the company in
return for its financial lifeline, becoming part of a global
automotive group centered on Nissan and Renault of France.

In April, Mitsubishi admitted using unapproved mileage tests on
cars it sells in Japan, which exaggerated the vehicles' stated fuel
performance. …